Omicron Co.’s headquarters are located on a floodplain and the company sustained significant losses as a result of a February 20X4 flood, the first such flood in 100 years. The flood occurred prior to the issuance of Omicron’s year-end 20X3 financial statements, and the associated losses are considered to be material. How should the losses resulting from the flood be reported in Omicron’s year-end 20X3 financial statements?
Both a disclosure and an accrual.
Neither a disclosure nor an accrual.
Disclosure only of the losses.
Only an accrual for the losses.